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Spaulding Smails

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Posts posted by Spaulding Smails

  1. On 4/12/2020 at 4:15 PM, Onboard 2.0 said:

    This has been one of the projects over the the Covid 19 season:

    The 2 original sets of rear sliding doors, and sidelites on the house never had a roof over them, so they were already beginning to suck when we bought the house.  The beams were a bit undersized, so they were starting to sag a bit. With a bit of time on my hands the last few weeks, I finally got around to replacing them with new French style doors, and fixed sidelites.

    I bought the new French doors as returned items, so I got both of them for what one set would have cost.

    Then a glass vendor I work with had 4 pieces of insulated glass left over from a project. I got all four for just about what one of them would have cost.

    I field built sashes, and frames for the insulated glass panels.

    I ripped out the existing sets of sliding doors, and repaired all the rot I found in the sills.  The rear wall of the house was supported at 4 points (one at each corner of the 10' wide sliding glass door openings). The center wall section between the original sets of doors had the most point load, and actually settled about an 1" over 30 +  years.

    Using French style doors allowed me to add (2) sets of additional posts to each set of doors, so the load gets divided into 4 smaller loads.  New oil rubbed bronze hardware.  I think the whole thing ended up costing around $3,800.  Retail would have been $6,000 for materials, and add another 25% or so for labor.

     

    IMG_7831.jpg

    IMG_7703.jpg

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    FullSizeRender-153.jpg

    The original sliders are the set to the right.  

    FullSizeRender-152.jpg

    FullSizeRender-153 copy.jpg

    This is damn fine work.  And, it looks like you didn't even fuck up your wood floors!  You saved a shit ton of money and the work is excellent from what I can see.  

  2. 40 minutes ago, Reagan1k said:

    This is no small point in the overall discussion of what the recovery will look like.  For many companies / industries, there is work TODAY as we are still picking fruit from projects planted months before the 'rona hit.  When the slowdown will manifest is in the months to come when there is nothing in the pipeline due to stoppages in project development.

    Some of the economy will bounce right back where there is immediate demand, but there are are going to be gaps where there is a break in the work cycle and nothing can fill that but time.

    That's a great observation.  Certain industries that have longer lead times, longer receivable terms and bigger backlogs are set up to weather the initial storm, but will feel the impacts of this shutdown months or even years down the line.  The industries that were hardest hit were those with point-of-sale transactions that shut off immediately.  The only plus-side to those business models is cash flow is almost immediate, so when the reigns start to loosen, they should see an immediate boost to revenue and hopefully profits.

    • Like 1
  3. 36 minutes ago, Frieda’s Boss said:

    Who do you bank with?

    SVB pushed back their goal of yesterday at 4pm PT and now just has “check back for updates” 

    Anyone use a bank they don’t have an existing deposit and/or Lending relationship with?

    I bank with Broadway.  As mentioned previously in this post, we switched about five years ago from BBVA.  I have all of my business banking for three businesses through them.  We finance all of our vehicle purchases through them and I have a revolving LOC.  Plus, my personal banking and mortgage is through them.  From a business perspective, the only thing we don't have with them is our mortgage on our building which is through a close friend's smaller bank.  It's been phenomenal to have a dedicated banker.  Not sure how much of that is just the fact that we do a decent volume of business with them and how much of that is their general level of service, but my perception is that Broadway is small enough to avoid the big bank bureaucracy, but large enough to have their shit together and offer good products, support, online banking, etc.  I can't say enough good things about Broadway as a whole leading up to this, and their service through this SBA PPP has been a reaffirmation of how well run they are. 

    • Like 1
  4. 16 minutes ago, G650 said:

    Well then you get into multiple banks and that's no fun. One email and any money I have can be in any account I have.

    Edit: My private side team does all the money moving, including weekly payroll, in and out of operating, etc..

    Two takeaways from this:

    -So glad we're with a mid-sized bank now (Broadway) instead of a behemoth (BBVA) like we were a few years ago.  BBVA was a revolving door of inexperienced "bankers" who didn't know their head from their ass.  Constantly re-telling our story, no proactivity.  Broadway has been a dream to work with.  They're proactive, they know me, and I truly feel like they have our best interest in mind.  They're all about the long-term relationship.  They've been rock stars over the last week through this SBA process.

    -So glad we outsource payroll.  I've been able to keep my office focused on operations.  I sent one note to our PEO rep Wednesday.  They're already handling hundreds of other businesses like mine that need the payroll info.  No problem.  We'll have the info to you by EOD Thursday.  Bam.  Perfectly formatted.  All the information I needed.  Would have been a pain to compile that internally.  

    • Like 1
  5. I've always had trouble sitting still, and we've had a full plate with kids' activities, etc for the last several years, so coming to a complete stop has been difficult.  Work has been bananas trying to figure this all out, so I'm spent at the end of the day.  We've been eating good, but I've been drinking too much.

    To keep busy, I've knocked out a ton of projects around the house.  Still a bunch more on the horizon.  My son has been obsessed with "Forged In Fire", so we started making a machete.  That's been great spending time with him and letting him take the reigns there.  Every night, we go outside and shoot hoops or hang while the kids ride bikes.  Been playing a ton of darts and 9-ball with my wife.  And lots of card games.  The only thing that I really watched on TV is sports, so I really miss that.  My running has been back up.  Averaging 30 miles/week over the last two weeks which is double what I was doing.

    We're at the ranch right now.  It's been incredibly cathartic.  I've been working as much as I would be at home, but it's nice to be able to go for a long walk around the place looking for sheds when I need a break.

    • Like 1
  6. 13 hours ago, Brew said:

    Depending on financial strength and overall revenue, it could also just suck rather than be a true need. Need is too arbitrary in this scenario. I can say factually I’m looking at being down $1.5M over 4 weeks. We were also on record pace to easily eclipse $30M, so without that revenue it’s going to suck. I also have a stupid amount of receivables and WIP out that will have some loss built in. However, I don’t know that we “need” it to survive. My partner group is taking a pay cut worst case and we may have to lay off a few people. I have other clients that have a true need for funds to stay open that probably aren’t going to get it. That’s not even touching on the point that our grandkids are probably going to be paying it off as we’ve already spent our kids money.

    This is very similar to our forecast and the pending implications.  As I said previously, we're in a good industry (construction / facility maintenance) with a good balance sheet and a strong backlog.  We had our largest month ever in February, and we were well on our way to $10M in revenue this year (30% YOY increase).  Even with Abbott re-opening construction yesterday, we're going to see a drop in production and revenue over the next few months.  Not to mention, I'm now forecasting a much lower than originally planned Q3 and Q4.  So, even if we're not feeling the pain to the magnitude and immediateness of other industries, this is going to leave a mark.  We don't "need" the SBA loan to survive, but we're damn sure going to try to take advantage of it.  If nothing else, it extends our runway several months to adjust our business model and keep a big chunk of our employees on the payroll that we would have otherwise had to consider laying off.  

    • Like 2
  7. 1 minute ago, Wally Pryor said:

    Same here.  Open season for me if my outsourcers can be included in payroll costs but thinking it's just my W-2'd staff. 

    Am curious about the PTO payout included in the formula.   The sheer definition of it allows you to double dip as that paid PTO is already in the W-2 comp.  

    That part was confusing to me as well.  You have to think it's going to be what's showing up on your payroll reports.  Wages, benefits, retirement, PTO.  Things that can be validated and confirmed.  If it is open to 1099s, it leaves it way to wide open for manipulating the subs and potential fraud.  I think there's going to be plenty of attempts at fraud as is, but isolating it to W2 reports at least makes it more standardized.

  8. 1 minute ago, Wally Pryor said:

    Yeah, thus my question.  Unfortunately, I see the 2nd being true.  For employers, just W2 comp being under the payroll cost umbrella. 

    I hope I'm wrong.  Not an unusual occurrence. 

     

    It's my interpretation that, as an employer, the calculation for payroll is based on W2 wages only.  I'm going to clarify that on my call with my banker tomorrow.  

  9. For two people, Gin Rummy is fun.  My 12 yo son and I have been playing that a bunch.  Hearts and Spades are great for four players.  You can play a modified version of Spades with two players as well.

    I'm glad you brought this up.  We used to play the shit out of VC in high school.  It was some card game that a Vietnamese friend of mine taught us.  Anyone else play that?  I need to go back and re-visit the rules and teach it to my kids.  That game was a blast.

  10. 2020 started out like an enormous turd in a punch bowl before the rona even entered the picture.  I told people that "January 2020 was the hardest year I've ever had in business".  From a business perspective, in January, we had:

    -Two vehicular accidents (one minor that was our fault, the other one totalled our vehicle but was the other driver's fault)

    -One lawsuit filed against us (bullshit three year old warranty claim that we'll win, but still going to be a pain in the ass)

    -Two recordable injuries (one of them major where an employee almost cut his finger off)

    -Had to issue a $60,000 credit (it was a deposit from December and the client decided not to move forward, so no money lost, but started off 2020 $60K in the hole from an accrual standpoint)

    Surprisingly, we killed it in February.  Biggest month ever from a revenue standpoint.  We had planned on hiring seven more employees in March.  

    2020 can eat a bag of dicks.

    • Like 1
  11. Below is the SBA summary that my banker sent over.

    Paycheck Protection Plan (part of the H.R. 748)
    ** The Bill has passed the Senate and is set to be voted on in the House on Friday (3/27). The President will need to
    sign, then the Bank will need to receive implementation guidance from the SBA before the program is available to our
    customers. **
    Key Program Details (subject to change prior to final Government approval):
    Eligibility –
    Small businesses, non-profits, self-employed, and independent contractors.
    (Churches and/or religious affiliated businesses MAY qualify – details to come)
    Must meet SBA Size Standards (based on NAICS Code of subject business).
    Loan Amount –
    Lesser of $10MM OR any outstanding balance on SBA Disaster Relief loans obtained between January 31, 2020 through
    date debt is eligible to be refinanced (information included within your Disaster Relief loan documents) PLUS:
    Existing Business:
    2.5x the average monthly payroll cost incurred and paid over the year prior
    New Business (less than 1 year):
    2.5x the average of 2 months payroll from January 1 st to February 29 th , 2020
    Seasonal Business:
    2.5x the average of monthly payroll from February 15 th or March 1 st , 2019 through June 30, 2019.
    *Payroll costs include salary, wages, and payment of cash tips, employee group health care benefits, including
    insurance premiums; retirement contributions; and covered leave. Salaries/Wages over $100,000 per employee
    will not be included.
    Loan Requirements -
    No Personal Guaranty
    No Collateral Requirements
    $0 Guaranty Fee
    Business must certify loan is necessary to continue to operate, retain their employees, and/or make mortgage and utility
    payments and that you have not applied or received another 7(a) loan for similar purposes.
    Loan Forgiveness –
    Calculated based on payroll costs, mortgage interest, rent, utilities for the 8 week period paid after loan origination.
    Payroll costs over $100,000 per employee will not be considered in the forgiveness application.
    *Amount will be reduced if the # of employees used to determine loan amount is decreased or salary expense is
    reduced*
    Business must certify funds were utilized to keep business operational and retain/pay employees.

    • Like 4
  12. 2 hours ago, VABuckeye said:

    Yesterday there was a portal open to apply for SBA disaster loan assistance online.  Clicking on the link today takes one to a page where the application can be downloaded to be printed, filled out and mailed in.  Yeah, that's going to be an efficient process.  Furk.

    My banker just sent me a summary.  I've never really considered an SBA loan, but this one may be pretty enticing.  I'll be curious to see what type of conditions accompany it.  But, on the surface, it seems to be a pretty solid deal that would help a ton. 

  13. 16 minutes ago, Brew said:

    I’ll get through a lot of the rest of this when I get some time tonight, but the first bill does NOT guarantee 80 hours. It is an FMLA extension and based on instructions from my two labor law attorneys if you are shut down as nonessential this bill does not cover you. It only covers business entities open where people can’t come to work for one of the 6 established reasons. You have to dig into the wording that was used in the bill and the FMLA law it lays on top of. That doesn’t mean they will not come back later and pull that group in with a future interpretation, but that is our understanding as of today. It is also not addressed in any specific DOL posting at the moment.
     

    I would be curious how they are coming to their interpretation.

    That's good insight.  I haven't read through the bill, but our HR consultant indicated that we WOULD be on the hook for up to 80 hours if a shelter in place prohibited our people from working (assuming they can't work remotely).  If it's limited to those six reasons (essentially direct effect of COVID-19), then we're in a much better spot as a company, but our employees are now up a creek.  I understood the FMLA piece that extends beyond that timeframe the same as you.  

    Let me know if you have any more insight or can cite the specifics of that provision that I can share with our consultant.  

    FYI, it sounds like the DOL updated the effective date for that first bill to April 1 to coincide with the start of the quarter as opposed to the previously communicated April 2 enactment date.  

    • Like 1
  14. Below is the summary of the second stimulus package that I just received from our HR consultant.  If true about advance refunding, this could be a huge shot in the arm for many businesses from a cash flow perspective.  Lots to be verified and digested here, but it's a start.

    • Late last night Senate lawmakers struck a deal for a $2 trillion stimulus package aimed at helping the people, states and businesses devastated by the coronavirus pandemic. The Coronavirus Aid, Relief and Economic Security Act — or CARES Act —  covers an array of programs, including direct payments to Americans, an aggressive expansion of unemployment insurance, billions in aid to large and small businesses, and a new wave of significant funding for the health care industry. The Senate is expected to vote on this later today! Here are the highlights as it stands :
      • Financial assistance to Americans (direct checks based on income level)
      • An extended unemployment insurance program for laid-off workers that will allow for four months of "full pay," and raise the maximum benefit by $600 per week. The provisions for UI will be back dated to January 27th.
      • $150B for the Health Care System.
      • $150B to state and local governments.
      • The CARES Act provides for advance refunding of paid sick and family leave credits so that employers can get the money they need to provide paid leave in the near-term.
      • $350B for small businesses impacted by the pandemic in the form of loans…and some of these loans could be forgiven (portions pertaining to payroll costs)! Businesses could receive a maximum of two and a half months’ worth of payroll costs, up to a maximum of $10 million, but forgiveness would be proportional based on how many employees the employer retained compared to its pre-COVID-19 levels. Employers can receive credits and loan forgiveness for pay provided to workers who were laid off on March 1 or later if they rehire and pay them.
    • Like 3
  15. 1 hour ago, Gale Snoats said:

    I'm a commercial litigation attorney in Austin with strong focus on construction.  The order issued by COA is poorly drafted and is creating a ton of confusion in the industry.  COA's intent is to shut down pretty much all residential and commercial construction but the order, as drafted, has holes that allow for exceptions to swallow the rule.  COA issued a 'clarification memo' earlier today but it isn't helping.  I've been on the phone with clients all morning who are scrambling trying to figure out what to do. 

    Get em Sea Bass!

    AIA sent out a memo from their attorneys basically outlining the same thing.  There are numerous conflicts with Travis County orders, direct contradiction of previous information, and the memo provided by Development Services last night essentially "fails to provide clarity".  

    • Like 1
  16. The boy and I are rolling out Saturday morning as well.  Need to fill protein feeders.  We'll see if we can call in a gobbler.  May sit in the blind a few evenings to see if an axis doe or pig walks out.  I'm so damn ready to get out there and turn off for at least a few days.

    • Like 2
  17. 3 minutes ago, RollLeft said:

    Given your industry it sounds to me like you run approximately 70k of payroll a week.  Your in a good position compared to most.  The question is cut people or tap into your lines of credit until  the government money comes in.  How's your WIP?  If strong i wouldn't hesitate if you insist on keeping staff.  It's a tough choice i don't envy it.  That said the guys who find it difficult to use their credit lines are the guys who never have to use them.  That's a good thing, until shit like this happens or you want to scale.

    WIP is solid.  We're over-billed on a number of jobs and gross margins are tracking ahead of budget on 8 of our 10 largest projects.  I have two stinkers that are getting drug out and eroding profitability, but otherwise we're fine.

    BTW, you nailed the weekly payroll number.  Damn near to the penny.  Well done.

    • Like 1
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